Taiwan’s AI Basic Act Can Be a Model for Asia

Taiwan passed the AI Basic Act in January 2026 to establish a “smart nation” by promoting AI research and development with an emphasis on safeguarding fundamental rights and cultural values.
The legislation establishes a layered governance system with a central authority to oversee AI applications across different sectors.
Taiwan adopts a “principle-based” approach to AI regulation, prioritizing innovation and aligning with the US and Japan, unlike the stricter regimes of the EU and South Korea.
The Act aims to bolster Taiwan’s position in the global AI and semiconductor supply chains, ensuring international confidence and trust in its governance system.
Taiwan intends to support AI sovereignty by amending laws to facilitate high-quality open data and by enhancing its compute infrastructure.
The Act emphasizes public-private partnerships to foster innovation and includes clauses encouraging collaboration between industry, academia, and government.
While the Act incorporates clauses relating to digital rights and labor protections, it lacks clear mechanisms for civil society participation in policy co-formulation and monitoring.
Taiwan plans a significant investment of over NT$30 billion in 2026, as part of a larger multiyear plan to develop its AI capabilities, despite internal political challenges and geopolitical pressures.

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